Free Market Trade

Vines and Real Estate

Operating under the theory that there should be a REIT for everything, Vintage Wine Trust adds to its portfolio of Vineyards. These are mainly sale/leaseback deals. I haven't dug into the economics, but one idea I like is using a vineyards as an amenity to housing. Much like a golf course development, given the popularity of wine and the romanticism associated with living/owning vines, I thought you could have each homeowner take an equity stake in the Vineyard. Of course everyone will want to make their "own" wine and the "Clubhouse" can operate like a wine co-op. Each owner can choose blend their own grapes and use their own barrels.

Mills Corp-- The upside

One piece of good news from Mills Corps latest woes (restated earnings, management cuts, project pipeline reductions) is the cancellation of the Mills pier project in San Francisco. This project was the winner in a controversial competition with the developers of Chelsea Piers to redevelop an area of the San Francisco waterfront. Don't get me wrong, I appreciate a good mall more than most and definitely don't subscribe to the usual hysteria about the "mall-ifacation" of America. That said, the idea of a Mills mall on the Embarcadero was a terrible one. I hope they revitalize the Chelsea Piers concept for the site.

Tishman Speyer moves into India

Tishman Speyer, in what continues to be a trend, anounces a partnership with ICICI Ventures to develop in India. ICICI has launched a $250 MM fund to focus on real estate.

The Great Gym Purchase Fest

Related's purchase of Equinox and Angelo Gordon, Marc Tascher and Belvedere buying Crunch (delayed closing) and the Sports Club purchase are all transactions that feel like "real estate disguised as retail" a la Toys R' Us. Now is seems like every deal is assumed to be real estate driven first. We may have now come full circle to "retail disguised as real estate disguised as retail." $500 Million seems to be far too much for Equinox's real estate, but makes more sense as a way to "brand" Related's buildings.  Equinox is a higher-end brand than Related (which is a tough name to brand anyway, "related to what?") and could add to the positioning of new projects. Do you need to buy the company to accomplish this? That is another question entirely. The Crunch deal also appears to be driven by the fundementals of the fitness business rather than real estate.

Albertson's Sale Is in Limbo as Board Rejects $9.6 Billion Bid - New York Times

The New York times is reporting that Albertson's Board Rejects $9.6 Billion Bid -. The group was the now standard (Big Private Equity + Operating Company + Real Estate Co.) setup with Cerberus, Kimco and SuperValu and CVS.

There have been a proliferation

There have been a proliferation of fractional ownership, high end timeshare (call them what you will) companies and projects. I am intrigued by the concept and have been following it closely. The success of the private jet fractional programs, NetJets etc, show there is nothing wrong with sharing expensive things. It also seems like these resort home programs are getting traction. Four Seasons, Leading Hotels of the World and Ritz Carlton are all marketing projects and programs.